Lumera obtains $25 million equity line; Elandia sells $40 million preferreds

By Laura Lutz

Des Moines, Feb. 22 - In PIPEs news Friday, Lumera Corp. announced a $25 million three-year committed equity financing facility with Kingsbridge Capital Ltd., a private investment firm.

Lumera may access capital under the facility in tranches between 2% and 3% of its market capitalization at the time of the draw down.

Each tranche will be issued and priced over an eight-day pricing period. Kingsbridge will buy common shares at discounts ranging from 6% to 12%, depending on the average market price of the common stock during the eight-day pricing period.

The minimum acceptable purchase price for any shares Kingsbridge may buy is determined by the higher of $1.25 or 90% of Lumera's common stock closing price the day before each draw down.

Kingsbridge also received a five-year warrant for 180,000 shares, exercisable at $3.01.

"Lumera is pleased to begin its relationship with Kingsbridge," Peter Biere, Lumera's senior vice president and chief financial officer, said in a news release.

"This new facility, which adds a strategic financing dimension for Lumera, gives us the potential to access up to $25 million in capital over the next three years. The new CEFF will be a less expensive, and therefore less dilutive, source of capital than that of more traditional capital market financings," he continued.

"Lumera currently has enough cash to cover our needs at least into the second quarter of 2009. We will continue to evaluate our capital needs as each of our businesses develops."

Located in Bothell, Wash., Lumera develops molecular structures and polymer compounds used in bioscience and communications.

Its shares gained 16 cents, or 6.78%, on Friday to close at $2.52 (Nasdaq: LMRA).

Kingsbridge has also been in the news this week for a $40 million investment in Oxigene Inc. That investment also took the form of a three-year committed equity financing facility.

Elandia sells preferreds

Elandia International Inc. arranged a $40 million private placement of preferred stock, according to an 8-K filed with the Securities and Exchange Commission on Friday.

Stanford International Bank Ltd., the company's principal stockholder, is the investor.

Under the deal, Stanford will buy up to 5,925,926 shares of its series B convertible preferred stock along with warrants for 4,158,000 common shares. The warrants are exercisable for seven years at $0.001 per share.

The preferreds are convertible into common stock at $6.75 per common share.

The stock will be bought in increments of $2 million on a weekly basis for 20 weeks, with the first increment to be bought within the first week after Pedro Rafael Pizarro is appointed Elandia's chief executive officer.

In consideration for the deal, Stanford Group Co., an affiliate of Stanford International, will be paid $250,000.

Elandia invests in telecommunications and information technology companies in emerging markets.

The Fort Lauderdale, Fla.-based company will use the proceeds of the placement to augment is product portfolio and for other working capital.

Elandia's shares closed up 5 cents, or 14.29%, at C$0.40 on Friday (OTCBB: ELAN).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.